What is constructive dismissal?

GOV.UK describes constructive dismissal as being forced to leave a job against your will because of the employer’s conduct, and says the reasons must be serious. Typical situations are a cut in pay or a demotion without agreement, a sudden change to hours or location the contract does not allow, or bullying or harassment the employer fails to deal with. GOV.UK also advises employees to try to resolve the problem with the employer first, and warns that someone who stays on after the conduct may be treated as having accepted it.

Australia writes the same idea into the Fair Work Act: a person has been “dismissed” if they resigned but were forced to do so because of conduct, or a course of conduct, by their employer. In the US the term is constructive discharge. The EEOC treats forcing an employee to resign by making the work environment so intolerable that a reasonable person could not stay as a discriminatory practice where it is linked to a protected characteristic.

For HR, the risk usually comes from changes pushed through without agreement or complaints left unresolved. Before changing pay, duties, hours or location, check what the contract permits and consult the employee. When someone raises a grievance about how they are treated, investigate and respond in writing within a reasonable time. An exit interview that surfaces a serious complaint is a prompt to investigate, not just to file the form.

A resignation letter that cites specific employer conduct, or a resignation that follows soon after a grievance, deserves a careful review before the employment ends. This is general information, not legal advice.

Also called: constructive discharge (US), forced resignation.